Many public four-year higher education institutions have struggled with declines in state appropriations. The impact of inadequate funding to finance capital needs is severe. Most of the facilities at these institutions were constructed over five decades ago and are in dire need of renovation, renewal and maintenance. With growing enrollments and space needs, funding for new construction is more challenging. The problem has undermined the ability of these institutions to fulfill their missions of teaching, research and service in an increasingly knowledge-based economy.;This dissertation uses case study analyses to examine the extent to which capital financing is provided for facilities, including resources needed for new construction, renovation, maintenance, and renewal at two public four-year higher education institutions, one in each of two states, North Carolina and Florida. The two case study institutions are North Carolina Central University and Florida A&M University. Data were collected through interviews, document analysis, and observation.;Based on the information presented in the literature review concerning the importance of resources for facilities, including those needed for new construction, renovation, maintenance, and renewal, the following research questions guided the study: (1) How does the level of capital financing for facilities at these two public four-year higher education institutions contribute to the development, change, and delivery of educational outcomes including student enrollment growth, increased space and capacity in classrooms, new academic programs, quality of faculty and students, and student retention?; (2) How do institutional decision makers set priorities for construction and renovation choices on the institution's basic mission and objectives?; and (3) What are the similarities and differences between the state capital financing models?;This study found that (a) capital financing for new facilities, renovation, renewal and maintenance has a direct effect on institutional outcomes including student enrollment growth, increased space and capacity in classrooms, new academic programs, and quality of students; (b) the priorities for construction and renovation choices impact the delivery of the basic mission of teaching, research and service; and (c) there are similarities and major differences between the state capital financing approaches.
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